Tesla could be on the path to a $2 trillion valuation as artificial intelligence reshapes its business model, according to the billion-dollar asset manager Wedbush Securities.
In a new research note circulating on X, Dan Ives, the global head of tech research at the $5.7 billion wealth manager, says the electric carmaker is entering one of the most important phases in its history as the AI revolution drives new opportunities in autonomous vehicles.
He says the Robotaxi rollout is a turning point for the electric vehicle maker.
“Investors are starting to see through the near-term demand issues for Tesla and recognize that Tesla is in a pole position to be a clear leader in the autonomous market opportunity, with Robotaxis set to scale to 30 to 35 cities in the US over the next year.
We also believe [the new pay package for Musk] was a relief for investors as this will confirm Musk stays CEO of Tesla at least until 2030 in our view, as Musk remains the most important asset to Tesla and the Board made the smart and right move.”
The Wedbush analyst estimates Tesla’s AI and autonomous opportunity is worth $1 trillion by itself, with the potential to double if stars align.
“We believe Tesla could reach a $2 trillion market cap by the middle of 2026 in a bull-case scenario. The $1 trillion of AI valuation will start to get unlocked in the Tesla story, and we believe the march to a $2 trillion valuation for TSLA over the next 12 to 18 months has now begun in our view with FSD (full self driving) and autonomous penetration of Tesla’s installed base and the acceleration of Cybercab in the US representing the golden goose for Musk & Co.
We maintain our OUTPERFORM rating and $500 price target.”
Last week, shares of Tesla soared amid a proposal for the EV giant to invest in the artificial intelligence firm xAI. But Tesla chair Robyn Denholm said the board would not issue a recommendation on the proposal, leaving the decision to investors.